The Nigerian Upstream Petroleum Regulatory Commission has presided over the formal handover of the OLO Oilfield Host Community Development Trust from TotalEnergies to Aradel Holdings, in what officials described as a major milestone in the implementation of the Petroleum Industry Act and the protection of host community interests during operator transitions.
The ceremony, held at the commission’s headquarters in Abuja, brought together senior officials of the regulator, executives of both companies, and representatives of the OLO host communities to formally complete the transfer of settlor responsibilities under the trust.
A statement issued by the NUPRC Head, Media and Strategic Communication, Eniola Akinkuotu, on Friday said the move is expected to ensure continuity in community development programmes despite the change in operator of the Olo/Olo West marginal field.
The OLO Host Community Development Trust was established in line with the provisions of the Petroleum Industry Act, which mandates operators to contribute three per cent of their previous year’s operating expenditure to support sustainable development in host communities.
Between 2023 and 2025, the trust has enabled the completion of more than 100 projects covering water supply, electricity, road construction, education, and healthcare. About 40 additional projects are currently ongoing, with over 25,000 residents across the host communities said to have benefited directly from the interventions.
TotalEnergies previously operated the Olo/Olo West marginal field within the former OML 58 in the Eastern Niger Delta before its acquisition by Aradel Holdings, making the transfer of responsibilities under the trust a statutory and operational requirement.
The oil major confirmed that all obligations up to the date of transfer had been fully met and that there were no outstanding liabilities. Aradel has now formally assumed full responsibility following the Commission’s regulatory consent.
Speaking at the ceremony, the Commission Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, who was represented by the Executive Commissioner, Health, Safety, Environment and Community, Capt John Tonlagha, said the transition demonstrates the effectiveness of the PIA framework in safeguarding host community interests.
He said the trust’s structure and governance have been preserved, ensuring that ongoing projects will continue without disruption.
“The Olo Oilfield Host Community Development Trust remains intact. Its governance structure has been preserved, and its statutory funding obligations are transitioning seamlessly to the new settlor, exactly as envisioned by the Petroleum Industry Act,” Tonlagha said.
He added, “The commission will continue to provide firm and consistent oversight to ensure full compliance with the provisions of the Act for the benefit of both the host communities and the industry. This is a critical component of building trust and stability in Nigeria’s upstream sector.”
In his remarks, the General Manager, Community Affairs, Projects and Development at TotalEnergies, Dornu Kogam, urged the new operator to sustain the transparent and inclusive engagement model that had guided the implementation of projects.
“We encourage Aradel Holdings to maintain the same transparent, community-centred approach. The success recorded so far is the result of sustained dialogue, mutual respect, and shared development goals,” he said.
Responding, the Community Affairs Manager of Aradel Holdings, Blessyn Okpowo, assured stakeholders of the company’s commitment to fulfilling its obligations and sustaining the development momentum.
“We want to assure the host communities and the Commission that, in line with the Petroleum Industry Act, we will honour all commitments and duties required of the settlor. We also intend to work very smoothly and continue the engagement model established by TotalEnergies,” he said.
The Chairman of the Board of Trustees of the OLO Host Community Development Trust, Wale Godwin, commended the progress recorded so far, noting that 118 projects had already been delivered out of 160 planned.
He also praised the regulator’s oversight role, particularly its approval of the Community Development Plan before the commencement of projects.
“We appreciate the commission for ensuring proper regulatory guidance and approval processes. This has strengthened transparency and confidence among stakeholders and ensured that projects are aligned with the real needs of the communities,” he said.
The host community framework under the Petroleum Industry Act is widely regarded as one of the most significant reforms in Nigeria’s oil and gas sector. It was introduced to address longstanding grievances in oil-producing communities over environmental degradation, poverty, and perceived neglect despite decades of resource extraction.
Under the law, operators are required to set up Host Community Development Trusts and contribute three per cent of their annual operating expenditure to fund sustainable development initiatives.
This model is designed to reduce conflicts, curb pipeline vandalism, and promote stability in the Niger Delta by ensuring that communities derive measurable benefits from oil operations.
The successful transition of the OLO trust signals growing confidence in the new regulatory regime and highlights the importance of continuity and accountability in community development amid asset divestments and acquisitions across Nigeria’s upstream sector.
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